Mortgage applications decreased 2.3 percent from one week
earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications
Survey for the week ending April 26, 2024.The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3 percent on
a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1.4
percent compared with the previous week. The Refinance Index decreased 3 percent from the previous
week and was 1 percent lower than the same week one year ago. The seasonally adjusted Purchase
Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent
compared with the previous week and was 14 percent lower than the same week one year ago.“Inflation remains stubbornly high, and this trend is convincing markets that rates, including mortgage
rates, are going to stay higher for longer. No doubt, this is a headwind for the housing and mortgage
markets, with the 30-year fixed mortgage rate increasing to 7.29 percent last week, the highest level since
November 2023,” said Mike Fratantoni, MBA’s SVP and Chief Economist. “Application volume for both
purchase and refinances declined over the week and remain well below last year’s pace. One notable
trend is that the ARM share has reached its highest level for the year at 7.8 percent. Prospective
homebuyers are looking for ways to improve affordability, and switching to an ARM is one means of doing
that, with ARM rates in the mid-6 percent range for loans with an initial fixed period of 5 years.”
…
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances
($766,550 or less) increased to 7.29 percent from 7.24 percent, with points decreasing to 0.65 from 0.66
(including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
emphasis added
Click on graph for larger image.
The first graph shows the MBA mortgage purchase index.
According to the MBA, purchase activity is down 14% year-over-year unadjusted.
